LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Southern District of Florida on behalf of a class (the “Class”) of purchasers of DS Healthcare Group, Inc. (“DS Healthcare” or the “Company”) (NASDAQ: DSKX) securities between August 12, 2015 and March 28, 2016, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move the Court no later than May 30, 2016 to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at email@example.com to discuss this matter.
DS Healthcare and its subsidiaries purportedly develop proprietary technologies and products for hair care and personal care needs. The Company has a network of retailers across North America and distributors throughout Europe, Asia and South America. The Company offers four lines of products: hair care, skin care, personal care, and over-the-counter drugs.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, including issues with the Company’s internal controls and accounting practices. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company improperly recognized and reported revenue in violation of Generally Accepted Accounting Principles (“GAAP”); (2) that the Company did not properly record and did not properly disclose certain equity transactions in violation of GAAP; (3) that the Company lacked adequate internal controls over accounting and financial reporting; and (4) that, as a result of the foregoing, the Company’s financial statements, as well as Defendants’ statements about DS Healthcare’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. On March 23, 2016, the Company disclosed that Company President and Chairman of the Board, Daniel Khesin, was terminated “for cause,” because “there is sufficient evidence to conclude that Mr. Khesin violated his fiduciary duty to the Company and its subsidiaries.” The Company further disclosed that its prior financial statements should no longer be relied upon due to errors in revenue recognition and certain Company equity transactions. Upon this news, the Company shares declined sharply in value, thereby injuring investors.
To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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